SHAREMARKET Up with world

Press, 21 July 1989, Page 14

SHAREMARKET Up with world

The New Zealand sharemarket firmed yesterday, echoing strong performances overseas. The Barclays industrial index rose 9.76 points to 1930.48. and rises outnumbered falls, almost two to one, on turnover of 11.58 M shares for a value of $14.87M. But the consensus was that it should have been stronger still. Fletcher Challenge dropped 2c to 460, so that it is still below Monday’s price of 465 and the beginning-of-month price of 475. This was in spite of a good profit report from Fletcher Canada. By value, Fletcher’s accounted for about a quarter of the day’s turnover. Overnight, prices rose sharply on Wall Street. The Dow Jones industrial index jumped 39.83 points, taking its gain for the month to 144.35. It is now at 2584.41 points, compared with a peak

of just over 2700 in August, 1987. The latest rise was inspired by good inflation figures (0.2% for June). Australia rose sharply yesterday, too. The all-ordinaries index soared 24.5 points. Tokyo was also buoyant yesterday, closing 143.77 points up on the Nikkei index at 33,664.87 after gaining 213.44 on Wednesday. Mr Tim Preston, operating partner with Hamilton, Hindin, Green, said the sharemarket was firm in the morning on the back of good performances overseas but there did not appear to be any follow-through as the day continued.

Prices began firm, but drifted off their highs through lack of buyers. Offshore interest appeared to be absent, Mr Preston said.

Fletcher Challenge continued to struggle. Investors did not have time to digest

the excellent results of Fletcher Canada, and the clarification of the recent purchases by the staff share scheme. These should have helped the price yesterday: it was disappointing they did not.

There appeared to be a number of offshore selling orders in Fletchers, which the local market was having difficulty absorbing. The current weakness in Fletcher's was unsettling other investments, Mr Preston added. Bank of New Zealand rights traded actively, up 2c to 12. BNZ head shares gained 3c to 85, 3.19 million changing hands. The bank's 30% shareholder, Capital Markets, gained 3c to 141. Lion Nathan rose 6c to 356 and Goodman Fielder Wattle rose 6c to 285. Wilson and Horton added 4c to 712. It is now 5% up this month. Of local issues, Applefields options jumped 40c to 140.